To The Moon

The rebound on September 7 means that the recent decline in US stocks has stopped ?

$S&P 500(.SPX)$, $SPDR S&P 500 ETF Trust(SPY)$, $NASDAQ(.IXIC)$ ,$Invesco QQQ Trust(QQQ)$ ,$DJIA(.DJI)$

In Wall Street's views, U.S. stocks still have space to fall.

• Bank of America believes that U.S. stocks may fall below the lows set by the current bear market, and there are not enough buy signals yet.
• Goldman Sachs, which has long been optimistic about the outlook for U.S. stocks, also appears to have reversed its risk, warning investors of further volatility ahead of a true trough in the current bear market.
• Michael Burry, a big U.S. stock bear, tweeted: The market hasn't bottomed out yet.

Bank of America strategist Stephen Suttmeier analyzed it from a technical level. He believes that the S&P 500 has tested the key point of 3900, which is the downward support of the head and shoulders top in August, and also the 61.8% retracement after the rebound from June to August. where it meets the downward test after July uptrend break.

Stephen Suttmeier believes that the lows from late June to mid-July may provide the next support between 3738-3712. However, if the index falls below the 61.8% retracement level (or 3899.84) of the June-August rally, it means the index is at risk of a retracement to the year's low of 3636. He warned investors that it is not yet the time to buy U.S. stocks, and if they want to buy, they need to wait for more buy signals to appear.

Goldman Sachs strategist Peter Oppenheimer analyzed the current bear market in detail in a report on Tuesday.

Bear markets can be divided into three categories: structural, cyclical and event-driven, the report said. Regardless of the type of bear market, the initial transition from bear to bull tends to be strong and driven by valuation expansion. But rallies in bear markets are common, making it difficult to spot these shifts in real time.

He believes that low valuations are a necessary but not sufficient condition for market recovery. Factors such as nearing the worst point of the economic cycle, peaking inflation and interest rates, and negative positions are also key factors in the real recovery of the market.

Facing the current U.S. stock market, the strategist concluded that:

The current market has not yet met the conditions for recovery, which suggests that the market will be further volatile before the real trough of this bear market is formed.

In addition to Bank of America and Goldman Sachs warning investors, Michael Burry, a major U.S. stock market bear, also said on social media: The market has not bottomed out.

Burry also pointed to the recent closure of two exchange-traded funds (ETFs) tracking special-purpose acquisition companies, one of the products of a huge bubble in recent years. The two funds traded without investors for less than two years as share prices plummeted.

In another tweet Wednesday, he linked the recent collapse in cryptocurrencies, retail-favored meme stocks and special purpose acquisition company transactions (SPACs) to the market crashes of 2000 and 2008 with what he expects to be this year. .

Burry was one of the first investors to spot the impending subprime mortgage storm and has a reputation as a "big bear" on Wall Street. However, in the past year, he has frequently "predicted" on social media that the U.S. stock market is about to collapse and the U.S. economy is about to collapse, but it has brought a lot of trouble to many investors who follow him.

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